Grocery chains play the Grinch in springtime

What was going through the minds of Canada’s big grocery chains when they decided, pretty much simultaneously, to end premium pandemic pay for front-line staff?

One thing for sure, it wasn’t positive PR or corporate image messaging. Loblaw, Empire Co. Ltd. (Sobeys) and Metro are all getting hammered for the decision. And they deserve the pounding.

The three grocery giants had been paying their employees a premium for continuing to work during the COVID-19 pandemic, keeping shelves stocked and people fed despite the personal risk. The socalled “hero pay” plans differed somewhat company to company, but they were all intended to convey the message to the public and staff that front-line grocery workers were heroes of the pandemic and deserved recognition.

So what happened? Did the pandemic quietly end? Is the elevated risk gone?

Here is what Loblaw hair Galen Weston said about ending the $2 two dollars per hour premium: “As the economy slowly reopens and Canadians begin to return to work, we believe it is the right time to end the temporary pay premium we introduced at the beginning of the pandemic. Things have now stabilized in our supermarkets and drug stores. After extending the premium multiple times, we are confident our colleagues are operating safely and effectively in a new normal.”

Genevieve Gregoire, Metro’s communication manager, said: “We are no longer working under the crisis conditions that prevailed from March through May as grocers were amongst the only retailers open to the public. Demand is stabilizing as other business are reopening.”

Sobeys CEO Michael Medline put it this way: “As provinces execute their reopening plans and customer behaviour shifts, we felt that this was a natural time to end our Hero Pay program.”

Here’s the thing though. Ontario, for example, is still seeing new cases every day. Yes, the numbers are down, but we still saw 184 new cases between Tuesday and Wednesday morning. There are still new outbreaks at LTC facilities. The public and store staff are still advised or required to wear masks.

The grocery chain execs seem to be saying the crisis is over, but their own behaviour suggests otherwise. So why kill the premium pay at this early stage? Was it killing the corporate bottom line?

Far from it. Loblaw profits increased 21 per cent in the first quarter compared to last year, a jump of $42 million. Empire Co. Ltd. said in a press release it saw a sales surge of 37 per cent. In the first two weeks of March, Metro is reported to have enjoyed a yearover-year sales increase of $125 million.

This pandemic may be tough on the vast majority of Canadian workers, but grocery chain execs and their shareholders are doing just fine, thanks.

Grocery execs and analysts will be quick to point out that most staff are second-income earners, or young people working part-time, as if that somehow means they shouldn’t be paid a living wage. They should and not just during a pandemic.

We are not through this yet. Nearly everyone expects a second wave, which could bring consequences not unlike the first wave. Will grocery chains again decide their staff are heroes and pay them a premium? Will they again take out expensive TV ads thanking those heroes?

And what about the provincial government? It has been full of praise for front-line workers of all stripes. Wouldn’t you think it would reconsider its decision to kill a minimum-wage increase? Or is all Premier Doug Ford’s rhetoric, like that of the grocery store chains, really just a gimmick?